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Creating a Business

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Identify at least three challenges when setting up a business. Explain why they are challenges:
Lack of Capital is probably the biggest challenge when starting a new business. Most small businesses are dependent on personal savings as they do not generally get funds from investors when starting up. And since most entrepreneurs are young and they do not have much funding to invest, their business will kick off much slower than an entrepreneur with age and savings. This lack of funds also limits business plans. Entrepreneurs will not be able to put together a substantial marketing plan or hire employees with a lack of capital, and without a marketing plan it will be extremely difficult and frustrating for the business to grow at the rate the entrepreneur might be expecting.
Time management is another key challenge in starting a business. With everything and everyone depending on the entrepreneur, it is hard for most to distinguish between low-priority tasks and high-priority tasks. They can get caught up in advertising the business and forget about following up with customers or vice versa. Both ultimately being a high-priority task, but not having good time management skills, it’s hard to get customers without advertising and it is also hard to keep customers if you are not following up with them.
Lack of experience in running a business is another challenge in starting a business. Most entrepreneurs have little to no experience in marketing, running a business, customer service, and financial accounting. Starting a new business requires much more than just an idea, and without experience it will become hard to juggle selling products and learning how to run a business. Without doing proper research before starting a business, entrepreneurs could lack productivity.

Define what a “niche” product is. Give at least three examples of niche products:
A…...

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